Why Greece Is an Ideal Destination for Foreign Pensioners

Each year, Greece attracts millions of visitors from around the world, enchanting them with its crystal-clear waters, mild climate, and the renowned warmth of Greek hospitality. While Greece is famous for offering an ideal vacation, it is also increasingly recognized as a premier destination for retirement. For those considering relocating long-term as pensioners, Greece offers compelling reasons to make the move. Here’s why Greece could be the perfect place for you to retire, including key details on tax incentives and essential requirements.

Favorable Tax Incentives for Pensioners

One of the most attractive aspects of retiring in Greece is the favorable tax regime designed specifically for foreign pensioners. Effective from July 31, 2020, this tax incentive offers a significant benefit for those receiving foreign pensions. Under the new tax regime, pensioners will be taxed at a flat rate of just 7% on their foreign income. This tax is payable in a single installment by the last working day of July each year. Importantly, this tax cannot be offset against other liabilities or credits, making it a straightforward and predictable expense for retirees.

To qualify for these tax incentives, you must meet certain criteria:

• You should not have been a Greek tax resident for five of the last six years before moving to Greece.
• You need to transfer your tax residence from a country that has a tax cooperation agreement with Greece.
• Applications for transferring tax residence must be submitted by March 31 of the relevant tax year.

Visa and Residency Requirements

For EU citizens planning to retire in Greece, the process is relatively simple, as you won't need a special visa or residence permit. However, non-EU citizens must follow a few additional steps.

1. Retirement Visa: Non-EU pensioners need to obtain a retirement visa through the FIP (Financially Independent Persons) residency program. This requires meeting certain financial criteria and demonstrating that you can support yourself during your stay. Read our article about the FIP to see if you meet the eligibility requirements.
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2. Golden Visa: Alternatively, you can apply for the Golden Visa program, which involves making a property investment. As of August 31, the minimum investment amount for the Golden Visa has increased to €800,000 in most areas of Greece. Read more about this here.

For detailed information on eligibility requirements for both types of visas, consult our team by clicking this link for more assistance.

Essential Documents for Retirement Visas

To apply for a retirement visa and permit, you will need to provide the following documents:

• Passport: Ensure your passport is valid for at least three months beyond the intended period of your stay.
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• Medical Certificate: A recent health certificate from a recognized authority, confirming your health status and absence of contagious diseases.
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• Police Background Check: A criminal record check from your country of origin or residence.
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• Travel Insurance or Private Health Insurance: Proof of insurance coverage for the duration of your stay, which is mandatory for the retirement visa.
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• Greek Tax Identification Number (AFM): This nine-digit TIN number is essential for managing administrative tasks such as opening bank accounts, securing property contracts, and accessing the TaxisNet online system for tax filings. To obtain a Greek TIN, refer to this article.

Healthcare System

Greece’s national healthcare system provides a broad range of medical services and treatments. While it offers good basic care, retirees might experience some language barriers and longer wait times. For more immediate and personalized care, many pensioners opt for private health insurance, which is already required under the FIP retirement visa program. Private healthcare services in Greece provide quicker access to medical services with fewer wait times and enhanced care.

A Healthy Lifestyle

Beyond the practicalities, Greece offers a balanced lifestyle that supports well-being. Its diverse geography is perfect for outdoor activities such as hiking, sailing, and kayaking. The Mediterranean diet, renowned for its health benefits, is another reason why Greece is an ideal destination for retirement. Enjoying fresh, local produce and a relaxed way of life contributes to a healthier, more fulfilling retirement.

In summary, Greece combines favorable tax incentives, straightforward residency options, a robust healthcare system, and a lifestyle that promotes well-being. It’s no wonder that it’s becoming a top choice for foreign pensioners looking to retire in an idyllic and welcoming environment.

Are you ready to make Greece your retirement destination? Click this link to schedule your complimentary 30-minute consultation call.